The last of the three hedge funds raided by the Federal Bureau of Investigation last month has said it is not a target of the government's wide-ranging insider-trading probe.

In a letter to investors last week, Loch Capital Management said it had been assured by the Justice Department, which is leading the investigation, that it is not a target. The Boston-based firm added that neither of its principals, Timothy or Todd McSweeney, are targets either.

Loch's announcement means that all three of the hedge funds raided have been told by the government that they are not targets. Both Diamondback Capital Management and level Global Investors said last month that they have been told that they are not targets. Janus Capital Group, the mutual fund giant that is one of several dozen firms to be subpoenaed in the case, has also said it is not a target.

Loch did say that it had used so-called "expert networks" in the past. In October, the founder of one expert network, John Kinnucan, was approached by the FBI about recording conversations he had with another client, SAC Capital Advisors. Loch says it never used that particular firm, Broadband Research, but it has severed ties with other ones.

"We have ceased using such networks and external research providers pending further review of this matter," Timothy McSweeney wrote. Still, he added that the firm is confident that its policies "are appropriate and reasonably designed to address concerns over trading on material, nonpublic information."